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Leeb's Income Performance Letter
Every retiree must understand the three fundamental shifts and a new approach to both safety and income...

Dear Investor,

I hope you got off the tracks before the freight train hit!

But if you didn't, you weren't alone.

But if, like so many retirees who were caught unawares, you saw your blue chip investments...your 401k...

or the value of your home drop by 10%...20%... or God forbid even 30% or more...

...please, don't despair... don't give up on the market...and don't just pray that your investments will all come back.

There IS something you can do.

Just as I warned readers in the past, I'm telling you now that, for the ill-prepared, the worst is yet to come - but for the brave, the determined, and the resourceful, there is light at the end of the tunnel.

Don't Rely on Washington!

If you're unhappy with where your investment strategy has taken you, believe me, continuing on the same course could hurt you even more. Remember, hope is not a strategy!

You can't count on the government to make things any better. After all, it was officials at the Fed who kept credit cheap for so long, helping to finance the bubble and the crash; and it was regulators like the chairman of the SEC who let Wall Street speculators become more powerful than the agencies that were supposed to watch them.

No, you have to take care of your money yourself.

That's why I urge you, given what's happened and where we are now, to make a careful reevaluation of what you're doing with your money. With unemployment and inflation about to ravage what's left of our economy, you need a solid, sensible plan that will not only protect you from further losses, but also help repair the damage.

As bleak as things may seem, this market is ripe with opportunities that are perfect for the retired investor who's looking to reduce risk, generate income, and grow the value of his portfolio. You can panic - or you can put cash in your pocket.

But I warn you...everything is different now. The old rules no longer apply. All of the traditional safe havens are at risk.

If you are a retired investor, or if you're investing for retirement and are interested in generating safe, high-yield income, you must reassess your holdings in light of the tectonic shifts in the market and the world economy. Nothing, nothing, is the same.

If, like the Dow, you lost as much as 10%, 20% or 30% in 2008, and are furious at the uncertainty of Wall Street - don't give up. When you understand the three paradigm shifts that are reshaping the world economy, you can make the prudent investments that will put you back on the road to long-term financial security.

This time is really different

In 2007, when the Dow hit 14,164, you had to dig deep into an overwhelming jumble of confusing numbers to see the trouble that was coming. While the talking heads on cable TV were reassuring us that the Goldilocks economy was still "just right," I was telling my readers to avoid Wall Street's high flyers and to put their money into low-risk investments that I knew would weather the storm.

Early in 2008, when the market was still soaring, most Wall Street professionals refused to acknowledge the danger signs. (Of course, those who bet against the market got rich during the sell-off.)

Early in 2008, if I'd told you that Lehman Brothers and Bear Stearns would be gone, would you have believed me?

If you heard me say then that AIG, the world's biggest insurer, would go belly up, would you have wondered if I'd lost my mind?

If I had said that Congress would be forced to pass an $850 billion bailout to save the U.S. (and the global) economy from a total meltdown, would you have listened?

If I'd told you in October 2007, when the market was hitting its all-time high, that you needed to prepare your investments for an economic disaster the likes of which you'd never seen, would you have dismissed me as a Chicken Little?

If I had predicted that the Fed would end a thirty-year inflation-fighting streak by buying US Treasuries, would you have believed me - or laughed?

Well, I sounded the alarm then. And ever since, I've been offering specific, practical advice which has not only limited the damage for my subscribers - but has put them back on the road to financial success.

When the S&P 500 was off 50% from 2007's high...

And the Dow was down more than 40% for the same period...

Subscribers who took my advice then to buy gold have since seen their money actually grow since I first made my recommendation.

Get Out? Stay the Course?

Will you believe me when I tell you that, as bad as it is, as much as you may have already lost, things could get much worse? That's why I urge you to reexamine your investment strategy in light of what's happened - and the even bigger changes that lie ahead:

· Runaway inflation is about to devastate your household budget!

· The price of crude oil will revisit $147 soon - but only on its way to $200 a barrel!

· The free ride supplied by soaring home values and global growth isn't coming back!

· Wall Street won't change its ways - it's still touting every bear rally as the bottom!

· The Federal debt is over $15.3 trillion!

· The government's unfunded obligations for Social Security and Medicare add up to $41 trillion!

· Your potential share of the budget mess is $455,000!

This is no time to sit back and wait for things to get better. These are treacherous times - whether you own blue chips, money market funds, or even just a mattress stuffed with cash!

market turmoil... volatility is here to stay

It's time to collect your thoughts and get ready. It's time now to take advantage of the three major forces that are reshaping the stock markets and the world economy. Understand them... master them...and you can harness their incredible power to defend against losses and build profits no matter what happens to the world's financial system.

There are three things that make this market different from anything you've ever seen before - three factors you must understand before you make your next financial decision:

The first factor: An historic bull market in commodities.

Dozens of analysts and fund managers will tell you this just a fear market, where investors are running to gold and silver because they don't know what will happen next. Those managers are wrong. It isn't just uncertainty that's driving these historic prices in gold, silver, and even copper and iron. Instead, it's the first warning bell of the new economy. Don't just react to it when it happens. With LIP, you can plan ahead, and succeed where others fail.

The second factor: The lingering aftermath of the credit crisis.

When our Congressmen failed to pass the bailout, the market punished Congress with a dramatic 777-point sell-off. But after our elected officials finally agreed to fix everything with the biggest government bailout in history, the stock market responded with the worst sell-off in history!

True, this kind of overwhelmingly negative investor sentiment has always marked the end of major market declines. And yes, the market did respond with a big rebound. But there's almost never been a time before when the federal government had to bail out private business on this scale. While the rally may continue - I hope it will - I'm prepared for more bad news with defensive plays that will generate steady income while standing up to whatever comes along.

The third, and most far-reaching, factor: A global economic slowdown that began with the meteoric rise in the price of crude oil.

For reasons I will outline below, it's only a matter of time (probably only months) before crude abandons $110 a barrel altogether and marches relentlessly to $200 a barrel and higher!

And nothing going on in the world today - not even the budget fight or the debt crisis racking Europe - will have a greater impact on your future wealth and on the lifestyle you may... or may not...enjoy.

Let me explain:

When oil first hit $100 a barrel, it was like an alarm bell ringing in every economist's office in the country - because oil prices affect everything. I call it "oilflation," and it's just getting started. It has already wreaked havoc on the broader market - and if you don't act, it could destroy your lifestyle.

To understand how the world has changed, and how to alter your investment strategies so you not only survive, but prosper, let's begin at the beginning:

In 1999, as the easy-money groundwork was being laid for the current credit crisis, the global economy silently underwent a second monumental shift...a shift that promises to give rise to an inflationary era the likes of which America has never seen.

This shift was probably the single most significant economic event since America abandoned the gold standard in 1973 - but nobody seemed to notice it at the time. And it has changed everything since.

The Second Part of This Incredible Mess!

Few people - even on Wall Street today - seem to understand an event that shook up global energy markets... that realigned global economic powers... and that has already had a serious impact on the global economy. My 2004 book, The Oil Factor, was one of the first to alert investors to this change.

In fact, it's how - despite the financial massacres that have occurred this decade - I have managed to help others profit through what has been the worst period in recent economic history.

I knew something that it seemed no one in any major Wall Street investment house knew - or at least something that no one was willing to admit...

When oil was still trading at $27 a barrel, I knew that global oil prices were headed to the sky. I warned people about significantly higher oil prices until my voice was hoarse. In fact, after The Oil Factor was published, people started to call me "the $100 oil guy." And I was scoffed at by many of my peers. But I'm sure you know what happened in the years that followed.

The Beginning of the End! Why Oil is Still Headed for $200 a Barrel

In 1999, a momentous transformation occurred in the dynamics of the global oil market. Oil prices became supply-driven. And that was largely due to OPEC.

For the first time in OPEC's history, they weren't just another player in the oil arena; they were the controlling player.

From 1982-1998, the major oil producing countries outside OPEC had the ability to increase oil production in order to accommodate global growth. But in 1999, these oil-producing countries hit a point where they could no longer increase production by any significant amount.

The only countries outside OPEC with the ability to increase production were a handful from the former Soviet Union and Africa. But the increases from those regions in the past decade have been negligible.

To put it another way: By 1999, the world was using all the oil that non-OPEC countries were able to produce. Before that, any shortfalls in OPEC's oil supplies - due to wars, political instability, terrorist attacks or whatnot - could always be made up by other countries. But in 1999, Britain and all the other major non-OPEC oil-producing countries hit a point where they could no longer increase production to fill in the gaps. They were already pumping at full capacity.

The result is that we are now completely dependent on OPEC - whose major members are situated in a politically unstable region - to make up any shortfalls in our global energy supply. This has not only sent global oil prices soaring skyward, but it has awarded OPEC with almost complete control over those prices.

As you'll learn here, this shift, coupled with demand from still-rising China and India, has already driven oil prices above $100 more than once; and by the middle of the decade, it could easily give birth to an inflationary era the likes of which America has never seen.

Just as in the inflationary '70s, P/E ratios will plummet across the board. Great growth stocks will see their prices crash, even as their fundamentals remain strong and growth powers forward. Traditional havens like CDs, bonds and money-market funds will turn into money pits. And markets will grow increasingly irrational.

Even worse, our enormous national debt is forcing us to raise taxes, just at the moment when the economy needs real money pumped in, not taken out. And in a world where corporate giants with 900-person tax teams pay ZERO taxes, who do you think will foot the bill? That's right. Only two people:

You.

And me.

But even as the broader market gets blown to bits, even as the executives who helped create the 2008 crisis laugh at the taxman and walk away, leaving us stuck with the bill - there will still be one investment...one tax category... one asset class destined to outshine the rest.

These companies perform vital services in the energy sector. They are tied to our nation's economy. And once I describe them to you, you will understand why they cannot and will not ever move all their operations overseas...as some "American" giants try to do.

These companies are not sexy. They are not glamorous. They will never make headlines. All they will do, month after month, year after year...is make money.

And that money will enjoy a tax protection that you cannot find anywhere else.

Before I tell you their name, let me first tell you why - in today's economic world - they are one of the best investments you could make...

The Coming Oil Shocks: The One Unavoidable Economic Reality and why you need to adjust

Despite all the media spin... and the hype about alternative energy... few people have a true picture of the real state of our global energy situation. As Dr. Colin Campbell (one of the world's leading oil geologists) said at a conference on peak oil:

"If the real figures were to come out, there would be panic on the stock markets. In the end, that would suit no one."

And the truth is that long term, crude oil is headed past the $200 barrel! That's because the figures just don't add up. It has become increasingly obvious to me and to a number of energy insiders, prestigious geologists, and oil moguls that we are on the verge of an energy crisis of unprecedented proportions.

And thanks to the monumental financial mess we've gotten ourselves into, there's no easy way out. No simple solution. Only the math is clear: Limited supplies just can't keep up with soaring global demand.

In just 150 years, we have burned through oil reserves that took eons to form. And no significant world-scale oil discoveries have been made since the North Sea and Alaska fields in the 1970s.

What's more, for the first time ever, Saudi officials have admitted to the world's leading industrial powers that OPEC will not be able to meet Western oil demand in 10-15 years.

high oil price cripple agricultural industry

And in 2009, BP estimated total world oil reserves at 42 years of life. That's bad enough - our children and grandchildren will live long enough to see a world without oil. But it gets worse - because that estimate assumes that world oil use never rises above the levels in 2009! Do you want to bet that China, India, or Indonesia will restrain their growth just so we can stretch out those reserves?

The world's wells are pumping at capacity, and they are running dry.

By 2020 the global economy will need an additional 6 million barrels per day. Where will this extra oil come from?

That's the problem.

It won't.

At least not fast enough - and not in the quantities we need. We are careening toward an era in which supply-side shocks will be the norm - resulting in regular super-spikes that will cause global industry and the corporate world to shudder. Any interruption in the supply chain will have dire effects, like the recent giant Gulf oil spill. It will slow down any future offshore drilling to a crawl.

But What About Alternatives?

I believe there will be technological revolutions in the production of solar energy, biofuels, wind power, thermal depolymerization, hydroelectricity, and so on. But it's too little, too late. We should have started decades ago.

Unfortunately, we are talking about the need to retrofit the current $45 trillion global energy infrastructure in order to produce, transport and distribute these new forms of energy. No matter how great a scientific energy revolution, it will still take years - if not decades - to retrofit the planet. And the crisis is upon on us now.

When we struck oil 150 years ago, it took generations for that energy source to become widespread. Oil transformed economies slowly, over time. It didn't happen overnight. The industry took lifetimes to develop the infrastructure to get oil to where it is today - to discover the wells, erect the refineries and build the pipelines that are needed to extract, transport, refine, process and distribute the 84.5 million barrels of oil the global economic engine needs each day to keep running. To supplant this existing structure with a new one requires a monumental effort.

The cost alone would be in the tens of trillions of dollars. And because of the complexity and magnitude of the project, it would take decades. The problem is, we should have started decades ago. But we never did. We never planned for the day of energy reckoning, and now it is here.

The pumps are running at full capacity. Populations are exploding. China, India and many other emerging economies are undergoing sweeping industrial transformations.

Our energy needs, according to the US Energy Information Administration, will soar a staggering 49% by 2035. Thanks to a lack of planning on the part of successive administrations, civilization in the coming years may face one of its most violent disruptions ever...

The Costs of Your Tomatoes, Corn, Cotton, Beans and Peanuts are Headed for the Clouds.

You rely on oil in more ways than you know. It's not just when you drive your car, or turn up the thermostat in your home. Virtually everything you own or consume has been touched by oil in some way - whether it was used in the transport of the goods, or the fertilizer on your foods, or the plastics in your products. Everything from combs to cameras, detergents to dresses, shampoo to shoe polish, has been touched by oil.

When oil prices remain low, it doesn't just keep the price of our gas and our heating down. It also keeps down the price of almost everything else, too. That's the value power of this black gold.

The frightening thing (and it's something the consumer has only begun to face) is that when the price of oil reaches a tipping point - a certain threshold - then it begins to seep into every nook and cranny of the economy. Prices for all types of goods and services, from gas to broccoli, start to rise with it.

We are reaching that tipping point today, and oil is about to spill over into every part of the economic universe. It will cause pain not just to consumers, but to industries from airlines to auto manufacturers, from chemical companies to paper mills, from plastic producers to textile suppliers, from agribusinesses to silicon chip makers...

For example, though few are aware of it, oil accounts for a large chunk of agricultural costs - not just because of transportation, but because of petroleum-based fertilizers, herbicides, and pesticides, and irrigation, as well. In 1999, when 

impact of rising oil

oil was just $16.55 a barrel, its cost accounted for 22% of agriculture's overhead. At $70 a barrel, it accounted for nearly 50%. At $100 oil, that percentage climbed to 70%. And at $200 oil, it will be a devastating 83%.

Until recently, farmers and growers have absorbed some of these costs. But more and more (as you've probably noticed) they've been forced to pass them on to you, the consumer. This means that the costs of your tomatoes, corn, cotton, beans and peanuts will be headed for the clouds.

And this is just one of the industries that will begin to pass on the soaring costs of oil.

Soaring Profits in an Oil-Strapped Future

As the price of oil continues to climb, as demand grows steadily and supplies shrink, oil's impact on our lives and on the global economy will become more pronounced. Exploding oil prices will rock global markets and send the world economy spinning. Instead of powering your car - it will be too pricey for that! - oil will instead fuel the new inflation. Even the most secure investments will become volatile - and many less solid ones will simply crash and burn.

And if you think the dividend checks from your bluest of blue chips will save you, think again. The rules will have changed, and the markets will deliver nasty surprises to millions of unsuspecting investors.


wind power in china

During the inflationary '70s, stock prices jittered like peas on a drum. From 1967-82, America's stock markets went through a 15-year period that was worse than the Great Depression. We experienced five bear markets. Investors became irrational. They punished even the era's greatest growth stocks. The P/E ratio of the S&P crashed from 16 to less than eight. Retail stores, cosmetics, beverages, even food stocks - all plummeted, with cosmetics leading the way.

And if you think the oil-shocked, inflation-afflicted '70s and late 2000's were bad, just wait for what's coming next. It will be the '70s on steroids, and it will strike hardest at people on fixed incomes. If you have a fixed income, please - prepare yourself-

Because you're the one who will be on the front lines.

You're the one who will suffer the shock of negative real returns. The modest rates of interest you get on your CDs, money market funds and bonds won't keep pace with inflation. Your monthly income checks will buy less and less. The rising cost of everything will eat away at the value of your investments and erode the quality of your life. Your social security checks, your dividends, your yields - everything will wither in the face of the soaring cost of living.

That's why I'm writing to you today - to tell you about the small crop of alternative investments that are hardwired to benefit instead of suffer from the enormous challenges facing the global economy.

In this report, you'll learn about the global market's most outstanding tax-resistant, inflation-proof investments. Many of these opportunities may surprise you. In some cases, we've had to look beyond Wall Street. We've had to dig a little deeper and probe a little harder. We've had to learn how to tap into the hidden asset classes of the hyper-rich.

Wall Street is slow to catch up on the elemental trends that are unfolding today, and on how they will affect investors...but we've been putting those trends to work for years.

For example, while the US oil giants stand to benefit from the coming global energy crisis and promise to be a safe harbor in the volatile years to come, there are a select number of investments that have all the energy focus of the titans, but have also specially structured themselves to defend against future US tax regimes.

· These are not corporations - even though they offer the performance of corporations.

· They are not ETFs - even though they can be traded easily and quickly.

· They are not bonds - even though their quarterly payouts are comparable.

These investments have been providing high yields, steady returns and outstanding tax benefits for 25 years - but if you go to the front page of the Wall Street Journal or BusinessWeek, you've probably never even seen them mentioned!

And they are focused on the one area that is certain to rise above all others in the resource-poor world that is rumbling toward us like an avalanche - energy.

The Tax/Energy/ Inflation Gambit Time to Invest in America's #1 Tax-Fighting Energy Stock!

During in the Gold Rush, most of the prospectors went bust. Who actually made the money? The merchants who sold the axes, picks, and shovels. Likewise, the energy company I'm about to reveal to you doesn't do exploration. It doesn't carry huge losses for dry oil wells and obsolete technology. It doesn't run dangerous, liability-ridden extraction sites. What does it do?

It sells the picks and shovels...or rents out the refinreries, pipe space and storage. In short, it provides services and infrastructure.

Infrastructure - from pipelines to electric grids to coal trains - is exploration's dowdy, boring twin. It's also exploration's safe twin, smart twin, and wealthy twin. We call oil-extraction companies "wildcatters," and they go bust all the time - while the companies that own the pipelines pump out steady revenues quarter after quarter after quarter.

The energy companies know it...but no one else has figured it out.

Actually, that's not quite true. The US government knows it, too. That's why it created a special tax structure, the Master Limited Partnership (MLP), to encourage investments in natural resources and commodities.

That means two things: First - as oil, gas, and coal prices rise, so will the prices that these MLPs can charge to move the resources across the country, store them, and provide men and equipment. Second - those rising profits will be shielded from the coming high-tax regime.

My big MLP choice is a company about pipelines - more than 30,000 miles of pipelines that move natural gas and crude oil across the country...not to mention hub platforms, ships, storage facilities, refineries and export terminals. Boring? Maybe. Until you realize that this company has a yield of 5.9%...that that yield is only going up...and that most of your cash distribution will be tax-free.

That's right. Tax. Free.

In 2010, this company set internal records in revenues, profits, gross operating margins, business volume and, most importantly, cash attributable to unitholders. ("Unitholders," not "stockholders." More on that in a moment.)

It is a member of the Fortune 500.

It's the biggest company no one notices, with over 50,000 miles of pipelines, more than 160 MMBbls of NGL storage capacity, seven hub platforms in the Gulf of Mexico, and 42 processing plants.

Its operations extend from Texas to New York to California. And while you are paying out your money to Exxon, BP, and Conoco - and cursing them under your breath - they are paying this company for the privilege of using their unparalleled network of energy resources.

This company specializes in delivering services to the

companies own pipelines

energy titans, and moving their resources to customers. Whatever company takes the risk of drilling, this company gets the certainty of bringing that energy gold to market. It has been in business for more than 40 years -

And there is no reason it shouldn't continue to make profits until the very last day that we use the very last drop of oil or natural gas.

The Brightest Star in the Energy Universe

This company that is destined to reap the rewards of the coming energy crisis is Enterprise Products Partners L.P. It is rock solid and ready to provide services to any energy giant that wants to operate in the US, from Amoco to BP to Shell. And to top it all off, Enterprise is a Master Limited Partnership (MLP) - not a corporation.

Haven't heard of MLPs? Don't worry, not many people have...which is what makes them so exciting. Master Limited Partnerships were created by law in 1986. They can only be used for companies whose business is 90% natural resources, commodities or real estate. Like stocks, they can be traded publicly...and like limited partnerships, the MLP does not pay taxes on profit, if they distribute on the cash flowit it distributes to their its partners. MLPs have no corporate income tax. The money is taxed only when unitholders receive distributions - and these distributions themselves are NOT TAXED. Just mention MLPs to your accountant and watch his eyes light up.

sky rocketing oil prices

Of course, there's a catch. You don't want to put these nifty investments into your IRA. Can you live with that? I thought so.

Listen - like you, I want to fix the deficit. And I'm willing to pay my fair share to make that happen. But the three-mansion crowd that created this mess have teams of lawyers and lobbyists to make sure that their own taxes never go up. General Electric has more than 900 lawyers working just on taxes, and it won't pay one red cent in taxes this year. Does that sound like you or me? Of course not. It's time that you and I we had some weapons of our own in the tax fight. And MLPs are a powerful weapon.

And because MLPs like Enterprise Products Partners are tied to energy, their value will shoot up even as oil shocks and resource crunches take their toll on the rest of the stock market.

The New Income Kings!

Energy MLPs are only one of the outstanding inflation-proof, tax-resistant investment opportunities you'll learn about in Leeb's Income Performance Letter.

In fact, one of the first benefits you'll receive when you sign up for a risk-free trial subscription is a free special report called The New Income Kings: Hidden Asset Classes of the Hyper-Rich! In it you'll learn about:

America's Last Great Income Kings. There's a small clutch of generations-old stalwarts that will shock Wall Street and defy the markets! They are the players with the money, marketing resources, and distribution channels to penetrate the world's biggest new mega-markets, China and India. Wall Street has largely ignored them. But we see them as the winners of the next generation. The ultimate buy-and-forget stocks, they will sail tall and strong in a sea of sinking equities. We'll tell you our top pick!

The New Income Kings: Hidden Asset Classes of the Hyper-Rich!

An Old-Time Investment Vehicle That's New Again. It's not a common stock; it's not an MLP. It's the stock that acts like a bond - with all the upside growth of an equity stake, the dividend guarantees and favored status of a bondholder - and up to three times the average yield of a standard stock!

The Real Estate Investment That's Poised To Grow. Ever since 2008, real estate investments have been poison...and that's why the opportunities in real estate have never been greater. As any savvy investor knows, whatever happens to a particular class of investments, there are always standouts and exceptions - and we've found a doozey. So, while the condo developers and land speculators are still licking their wounds, you can be part of a solid, straightforward real estate investment that combines land development, timber, and energy with cash earnings that have rebounded from their 2008 lows.

Sign up for Leeb's Income Performance Letter today, and we'll rush you a copy of this cutting-edge special report!

But these great new income plays are not the only way to ride out this inflationary market safely. In fact, there's another aspect of this market that, although it stands to crush many an investor, has the potential to make those on the right side of it very rich indeed...

The Third Major Reason to Adjust Your Long-Term Investment Strategy: 3.4 Billion New Capitalists Virtually Overnight
Now, while the markets are still crippled by the aftereffects of the credit crisis, and rising oil prices lay the foundation for a new era of runaway inflation, there's a third powerful force about to rewrite the rules.

This deeply inflationary force is already at work. And it promises to send inflation to highs we've not seen since it hit 18% back in 1946! Combined with our current global financial weakness and the impending, still unacknowledged energy crisis, this third force will soon boost inflation far beyond the tipping point - into a region where it will take on a life of its own.

It's not a question of "if," it's a question of "how high?" How high will inflation go before it begins to rupture the very fabric of American society?

Get ready for worse, more gut-wrenching market reversals...new mindsets... and dramatic changes to business as usual. But if you understand the key inflationary forces building in the global economy, you can crush them before they crush you. You can turn them into the kinds of profits that only come when 3.4 billion new capitalists rush onto an already crowded industrial stage.

That major inflationary force is the coming commodity crunch. This crunch is already starting to bear down on global industry. And it is becoming more intense because of two profound economic events that were set in motion years ago.

The first was the collapse of communism. The second was the rise of the Internet.

3.4 billion new capitalists

These momentous events allowed 3.4 billion new players to become an integral part of the global economy virtually overnight. Communist, socialist, and even struggling subsistence farming cultures that were once isolated (or even barricaded) from the global trading game became an integral part of it in almost the blink of an eye.

America's engineering classes are empty

The information revolution melted the Iron Curtain, opened up the world's last major trading and communications channels, and drew these new players onto an already creaky and crowded industrial stage.

Together these two events changed the shape, redistributed the power, and greatly expanded the size, complexity and reach of global commerce in a way we never dreamed possible...

And now these new capitalists are hungry to taste the fruits and enjoy the wonders that economic freedom can bring. That means that - just like us - they want to consume. And that means production must increase.

And that means the demand for resources will explode.

Soaring global demand for all types of commodities will place unprecedented strains on an already stressed system. We are facing a colossal commodity crunch - everything from oil shocks to zinc gaps...from copper crunches to silicon squeezes.

In many cases, we're not actually running out of the resources themselves, but out of the "cheap" commodities. Sure, there are millions of tons of coal yet to be mined, but the quality of that coal - in terms of its energy content - is likely to peak in as little as a decade, if it hasn't already. There's a copper "peak" too - there is only a finite amount available to be mined economically. And the world's demand for the metal is not only outpacing producers' capacity; it threatens to exceed total supply (above and below ground) in just a few years.

We're also running out of time and human capital. We simply don't have enough qualified workers - enough engineers, geologists, miners, scientists, chemists, and architects - to build the enormous infrastructure needed to keep the global engine running.

What Wall Street doesn't realize is that it takes years to educate and train the workforce needed to build this essential infrastructure. And it takes even more years to build the oil rigs, the copper mines, the refineries, the pipelines, the power stations, the supertankers, and the distribution networks.

Years that we just don't have.

The Human Capital Crunch

Another great problem is that the world's engineers and upper management are largely baby boomers, and they're all retiring - at the worst possible time.

In the '70s, we had a glut of mining engineers, geologists and surveyors. The industrial world was awash with them. They were among the hottest, most sought-after professions, and they helped flood the market with what seemed an endless supply of cheap natural resources.

But as the green organizations, the popular press, the scientific community and the conservationists began sounding the alarms about global warming, acid rain and pollution, these professions became the dirtiest in industry.

America's engineering classes are empty. What will this spell for the future of our country?

And as economic booms exploded in electronics, computers, telecommunications, healthcare and finance, these old-economy careers and corporations were the thorn in industry's side...

...and the number of undergraduates signing up for programs in the natural resource sector dropped dramatically.

In the early '80s, we were graduating 700 mining engineers a year. Today we are graduating a mere hundred. The number of universities offering mining engineering degrees has dropped from 25 to 15. One school closed in 2001, after graduating only one student.

In the '80s, everyone had geared up for an industrial world, but these vital basic commodities no longer seemed critical to global commerce. The commodity industry had spent billions ramping up production - new mines, new machines, new steel mills - to meet demand. Well, demand was met, and then exceeded. And suddenly, a new technology-driven economy was awash with old resources that it didn't need.

But an expensive industrial resource machine was already in place. Powering it down proved financially crippling. Oil companies were forced to merge. Copper mines were forced to shut. Furnaces died. Refineries went offline. And commodities began their 18-year bear market.

soaring global demand for all types of commodities

The Commodity Conundrum; Why a U.S. Recession Won't Stop Inflation

In 1980, there were only 1.7 billion players on the industrial stage. As the decades went by, communism collapsed, the Internet exploded, and mega-markets like China and India industrialized. This brought billions of new players onto the global stage.

New Economy giants like Cisco, WorldCom, and Global Crossings raced to connect the capitalist West to the emerging East. They spent over a hundred billion dollars wiring the world for global commerce.

What they did, in essence, was wire China, India and other emerging economies for commerce...for industrialization... for capitalism. These fiber optic cables tied the emerging markets to the West in an intimate way that had been impossible before. These cables became commercial tethers to the free market.


It was a monumental investment that, come 2000, fell very flat for the companies that laid the cables. But despite the Great Tech Wreck, the groundwork had been laid. The East, Central America - even Africa (a market of 3.4 billion people) - were now
part of the global economy, and they were hungry for everything the West had enjoyed for years, like TVs, mobile phones, dishwashers, dryers, PCs, bright lights and flashy cars...

Now we have over six billion people drawing on the finite resources of the planet. In just one more generation, we'll have eight billion. And as our population increases, so does the complexity of our society, finance, and industry. In other words, not only does demand rise with population: it also rises because of the complexity of the infrastructure that population needs - and it now demands far more resources just to keep going. The infrastructure that provided an excess of commodities only two decades ago is now woefully under-equipped to handle today's demands.

Regardless of how much US consumers may cut back, the worldwide demand for the basics will cause one of the most colossal commodity crunches the global economy has ever faced.

And the next great wave of industrialization is coming. It's bigger than any we've experienced in the past, and when it hits, the situation will become dire. This industrialization, coupled with the global energy crisis, will turn Wall Street on its head. Industries and corporations once thought immune to such pressures will be pinched until they squeal. Commodity crunches have already begun to bear down. In the very near future, we'll be hearing that rubber shortages are deflating tire companies... zinc gaps are closing in on sunscreen manufacturers... copper crunches are hitting electric and construction companies... silver shortages are tarnishing the profits of jewelers and solar-panel manufacturers... and high oil prices are crippling airlines, manufacturers and even food producers.

Why the Treasury Can't Stop The Deadly Inflationary Spiral

National debt crises and global credit weakness are only a small part of the problem. As world commodity prices soar inevitably skyward, industry will be forced to pass these extra costs on to the consumer, adding to inflationary pressure. Higher energy and commodity costs will force businesses to charge more for goods, which in turn will force workers to demand higher wages, which will further add to the cost of goods.

And that will hurl us into the next deadly leg of the inflationary market. This is the critical point at which "inflationary psychology" takes over: when investors realize that they can get a much better deal from hard assets than they can from stocks and bonds.

It is then that the Wall Street herd will stampede into oil, gold, silver, platinum, copper and other commodity investments, putting even more pressure under commodity prices, sending them to dizzying heights... and thrusting us into the same inflationary spiral that almost ruptured the fabric of American society in the '70s.

While this will be terrible news for the broader market, for commodities (and for those invested intelligently in them) it will mean...

...riding one of the

greatest bull markets

history has ever seen!

The power will have shifted once again from the New Economy to the Old Economy.

The New Economy and its industries will be dependent on these commodity producers. Their supplies, their infrastructure, and their volatile values will have the power to determine the fates of companies, industries - even nations.

The commodity kings will rule once again. And the time to reposition yourself is now!

There is every reason to believe that this new commodity bull (that has been waiting in its chute for 18 years) will far outrun the one that came before it. In fact, we had three major commodity bull markets in the last century, and each one outran its predecessor.

It's about to happen again.

In 1982, then-Fed Chairman Paul Volcker managed to put the breaks on inflation by raising interest rates far above the rate of inflation. The economy paid a high price in lowered short-term growth, but it worked. Current Fed Chairman Ben Bernanke has no such option available to him.

Why Bernanke's Hands Are Tied

There is one major reason why Treasury Secretary Geithner, Fed Chairman Bernanke and Congress will be unable to tame the inflationary beast, and why the Fed will be forced to tolerate previously unacceptable levels of inflation.

If Bernanke were to apply Volcker's medicine to the markets and raise interest rates high enough to tame inflation, he'd get far more than he bargained for. It wouldn't be just a recession. It would be a second Great Depression.

The problem is that, unlike the '80s, we are now drowning in a sea of debt. That's what took down Bear Stearns, and Lehman Bros, but it's not just the banks that are in a world of danger -

· The total public debt outstanding of the US is $14.26 trillion!

· The budget deficit just for 2012 is $1.1 trillion! Do you remember when that would have been an outrageous number for the entire US debt?

· And the present value of unfunded obligations - like Medicare and Social Security - is a horrifying $45.8 trillion!

On top of all that government debt, corporate and private debt are still at astoundingly high levels, three years after the Financial Crisis. What's worse, the private debt was funded largely with home mortgages and credit cards. Encouraged by an irresponsible mortgage industry, too many home owners put too much faith in the value of their houses - so much so that they were willing to bet their futures on it. Any interest rate hike large enough to attack inflation would make repayments on adjustable home mortgages even more unsustainable than they are now.

Those with adjustable rate mortgages and high-rate credit cards have already been crippled by rising monthly repayments. And higher borrowing rates have put the last nail in the coffin of the already moribund housing industry.

What's more, real estate values will not be able to keep up with inflation. Housing - the one thing that once could be counted upon to keep the entire global economy afloat - has become a bigger and longer-lasting drain than almost any other sector. Another fiscal event could bring the entire house of cards down again.

Too Little, Too Late? Will the Treasury Save Us?

Bernanke and Geithner face one of the toughest jobs in the history of central banking. We're still in a recession, or even worse a full-blown global depression, the likes of which the world has never seen. Bernanke and Geithner are desperately trying to move us onto firmer ground, but the specter of the dreaded "double dip" depression is always there.

You think it's been bad so far? The last few months of financial crises - from Greece to Ireland to Portugal - could be just a hint of what lies ahead.

And another miscalculation on Bernanke's part, and the tenuous economic improvement we've seen in the US could evaporate like morning fog. And it's not just his own moves that he must consider. More and more he must consider the moves of the Central Bank of China, which has begun to exercise even more control and influence over our own markets than Washington does.

One thing is certain: Bernanke and the Federal Reserve have only one viable policy left. And that is a policy of growth at any cost - expansion at any cost.

The Fed must do whatever it can to keep the global economy growing. To do that, Bernanke must ensure that America is once again able to get the easy money it has enjoyed for so long. Unfortunately, that means keeping interest rates at near-zero rates, and allowing inflation to reach levels that were previously unacceptable.

Resource Wars... Medicare Meltdowns ... Social Security Fiascos...

And if you have any doubt left that this new inflationary era is about to descend on us, consider the future of the federal deficit...

To quote a famous song: "The only way is up."

The US government will need to keep spending an enormous amount to maintain America's military machine. No matter who is president, America's military superiority will be crucial in a world of diminishing oil supplies. In the future, the US will have no choice but to flex its muscles to ensure that it gets its fair share of this oil.

As supply shrinks, resource wars will explode all over the world. Look at what's going on today. Is it only a coincidence that so many of the world's hotspots also happen to be in or near major oil-producing regions? Nigeria, Libya, Iraq, Iran, Bahrain, Kyrgyzstan, Pakistan - the list goes on.

But it's not just a trillion-dollar military machine the US needs to fund. There's also an aging and ailing population that must be cared for.

The nation's workforce is getting older and retiring. What's more, those retirees are living longer and longer. This is placing an enormous strain on our health and pension system. The nation's future Medicare and Social Security bill is estimated to be as high as $81 trillion. This is a multi-generational crisis... one that will affect not only your future, but your children's future as well. The only way America will be able to pay that bill is to print more dollars - another a highly inflationary pressure...and one that will further drop the value of the dollar.

How to Outsmart an Inflationary Market

While Bernanke and his compatriots at the Fed will try desperately to keep the official published inflation rate (the CPI index) below the psychological level of 5%, they won't even manage to keep the country out of a depression.

One more oil shock...one more economic or geopolitical disaster...or even just the first hint of the super-bull market in commodities... is all it could take to unleash the inflation monster on the markets.

Even without any external crisis, we are fast approaching the inevitable: The day when the inflation rate becomes not just another figure but becomes the one force above all others that will define the parameters of the entire investment environment. The time to prepare is now.

That's why there has never been a more opportune time for an investment service like Leeb's Income Performance Letter.

Inflation is a force Wall Street has never been able to deal with...a force your average investment analyst doesn't understand...but it is about to become the most potent force directing the markets. It is a force that's been kept under tight control for over two decades - but now it has begun to rear its ugly head. Fortune magazine calls it "the retiree's worst enemy." Others say it is "the cruelest tax on your wealth."

But while it can be one of the most destructive forces in the economic universe, as we've said, there are ways to profit from it. That's what you'll learn how when you sign up for Leeb's Income Performance Letter.


Inflation Survival Guide: How to Defend Yourself From Investors' Greatest Enemy

In the Inflation Survival Guide, you'll learn about:

· The #1 Global Commodity King. It's one of the most profitable major miners in the world, and also is the most diversified one. Yet Wall Street has shafted it - even though it's raining copper, diamonds, gold, aluminum, coal and more!

· High-Yielding Foreign Stocks in Appreciating Currencies.

· The Modern Financial Miracle - and one of the most effective inflation-fighting tools known to man! These instruments should form an essential component of every investor's portfolio - and their income is government guaranteed. We'll tell you little-known, inexpensive ways to purchase them, plus special types that can win.

· The #1 Gold Stock to Own! This company has the best production profile of any major gold producer, and its cash cost of production makes it one of the lowest-cost producers in the business.

· The Retirement Vehicle of the Future! A great money migration has already begun, and it's pouring into international bonds. The super rich have led the way...but anyone can invest. We'll tell you about the strongest international bond fund on the market today.

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Commodity Kings... Asian Energy Plays... and Modern Financial Miracles!

In the Inflation Survival Guide, you'll learn about:

· The #1 Global Commodity King. It's one of the most profitable major miners in the world, and also is the most diversified one. Yet Wall Street has shafted it - even though it's raining copper, diamonds, gold, aluminum, coal and more!

· High-Yielding Foreign Stocks in Appreciating Currencies.

· The Modern Financial Miracle - and one of the most effective inflation-fighting tools known to man! These instruments should form an essential component of every investor's portfolio - and their income is government guaranteed. We'll tell you little-known, inexpensive ways to purchase them, plus special types that can win.

· The #1 Gold Stock to Own! This company has the best production profile of any major gold producer, and its cash cost of production makes it one of the lowest-cost producers in the business.

· The Retirement Vehicle of the Future! A great money migration has already begun, and it's pouring into international bonds. The super rich have led the way...but anyone can invest. We'll tell you about the strongest international bond fund on the market today.

These investments are already profitable, and they're still rising. But once the energy crisis heats up, and inflation flies past 5%, these investments should ratchet up to dizzying heights very quickly. Wall Street will gape in awe as the broader market gets blown to bits and these alternative plays reach valuations they haven't seen since the inflationary '70s. This may be your last chance to get in on them cheap.

Sign up for Leeb's Income Performance Letter today, and we'll rush you a copy.

Booming Commodities... Outstanding Income... Retirement Sanctuaries

Inflation Survival Guide: How to Defend Yourself From Investors Greatest Enemy and The New Income Kings: Hidden Asset Classes of the Hyper-Rich are just the first of many powerful benefits you'll receive as a charter subscriber to Leeb's Income Performance Letter.

Each month you'll also get:

· Long-Term Stock Recommendations with Multi-Decade Growth Potential! These are greatly undervalued energy and resource stocks that have the potential for breathtaking growth, and not just for the next few years - but even for the next few decades! They include oil and natural gas recommendations, plus other energy and resource companies that harbor decades of what will become increasingly scarce - and increasingly valuable - commodities.

· Top Undervalued Commodity Plays. You'll learn smart, easy, low-risk ways to invest in the commodity boom. While Wall Street's trying to cash in on commodities by playing the high-risk futures market, we'll show you easier, cheaper and safer ways to play this lucrative bull. We'll tell you about the most undervalued producers of commodities like oil, gas, copper and platinum, the ones with the greatest potential for growth: producers that boast seasoned management teams, that are sitting on huge reserves, that have mastered the supply/demand squeeze. These commodity kings are some of the most powerful long-term investments on the market today.

· Outstanding Income Investments. Inflation will wreak havoc on the broader market, and P/E ratios will plummet but there are a handful of generations-old stalwarts whose growth will be so spectacular they will outshine even inflation. These are those corporate goliaths that have their feet firmly planted in the Chinese, Indian and Brazilian mega-markets. They are perfectly positioned to profit from the staggering growth potential of these emerging economies. What's more, they will enjoy the added benefit of raking in revenues denominated in rapidly rising currencies. While most retirees and income investors will watch their income checks wither away, you won't have to. You could enjoy an ever-rising stream of income checks by being invested safely in The Income Kings of Tomorrow. These corporate kings rank among the surest investment bets you could make today. You'll also learn about top-performing utility stocks, Real Estate Investment Trusts, Master Limited Partnerships, Convertible Preferred Stocks, and many more outstanding income investment opportunities. Gold Prices Signal Declining Dollar

· Access to Hidden Asset Classes of the Hyper-Rich. You'll learn about exclusive little-known investment classes that lie in the shadows of Wall Street - investments where you'll go from being a mere shareholder in a corporation to being a partner... and as a partner you'll reap much fatter rewards: things like fat yields (up to three times the size of the average S&P stock) and the kind of tax breaks you thought were only enjoyed by the hyper-rich. Although each of these opportunities is available right there on Wall Street and costs no more (in fact even less) than the average mutual fund, most investors can't see them - but we'll show you where to look...

What's more, we'll also send you important news bulletins and alerts on any event that may impact our portfolio. This is the kind of premium service for which other investors pay $1000-$5000. But as a subscriber to Leeb's Income Performance Letter, you'll receive all these powerful benefits as part of the package.

Your Introductory $39 Offer!

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A one-year charter subscription to Leeb's Income Performance Letter costs just $199. But as a special subscription offer, we are giving you the opportunity to sign up for just $39! That's $160 off the regular price.

And we will give you our special guarantee: If you decide at any time that Leeb's Income Performance Letter is not for you let us know. We will let you cancel and give you a pro-rated refund on the remainder of your subscription.

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Or - for an even better deal - sign up for two years for just $78. That's $320 off the regular price! Plus we'll rush you a copy of my latest book, Game Over: How You Can Prosper in a Shattered Economy. In it, you'll find out:

Game Over How You Can PROSPER in a Shattered Economy by Stephen Leeb

· Which seven widely-held beliefs about the U.S. economy will be proven false - to the detriment of millions of investors.

· Why the old solutions to financial crises won't work this time around.

· Why today's wealthy will suffer devastating losses while a new generation of multimillionaires emerges.

· Why the secret to making millions will soon be more about John Rockefeller than Warren Buffett.

· Which key natural resources will soon suffer from severe shortfalls, despite the recession.

· Which major industries will be hit the worst for the next few years.

· Which severely undervalued stocks will become the new market leaders.

We are quickly approaching the tipping point in the economy - and in your investments.

 

Now is the time to take action. Please don't waste another minute!

Sign up for Leeb's Income Performance Letter today, and we'll rush you details on the investments that can make you rich in the oil-shocked, inflationary times ahead.

Sincerely,

Dr. Stephen Leeb
Research Chairman
Leeb's Income Performance Letter

P.S. As oil and commodities ratchet up in price, more and more investors will exit the mainstream markets and pile into commodities. Today you have a once-in-a-generation opportunity to get in on the ground floor before the lemmings on Wall Street bid the profits away. Oil, commodities, and international resource stocks are still trading at very attractive levels. But not for much longer. This may be your last chance to buy oil, copper, gold, silver, Brazil, China, India, or alternative energies at reasonable prices. In the larger scheme of things, these resources, metals and countries have barely begun their bull markets. But as soon as inflation edges up past 5%, these alternative investments will fly off the charts - so please, don't delay too long!

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